The Tamil Nadu government will introduce value added
tax (VAT) from January 1, 2007, the state's commercial
taxes minister S N M Ubhayathullah said. The government
would introduce a bill in this regard in the coming assembly
session, beginning on December 4, he said.
VAT had been introduced last year, the centre would have
given 100-per cent compensation. But the state will receive
only 75 per cent compensation now", he said. The
state government would incur a revenue loss of Rs3,000
crore per annum after the introduction of VAT regime,
the minister added.
He said the bill specifies tax to be levied on various
commodities and this would be announced along with the
introduction of the bill. The bill had already been drafted
and traders could clarify their doubts and give suggestions
to the commercial taxes department, he said.
would be given individual taxpayer identification number
(TIN) and the process of issuing the taxpayer identification
numbers would be simplified, he said. Traders who had
been registered under the Tamil Nadu Sales Tax Act should
obtain registration certificates under the new Act, he
said, adding that no registration fee would be collected
3.9 lakh tax related cases had been registered so far
against traders in the state, the minister said.